Trading Symbol: UEX-TSX
VANCOUVER, Nov. 26 /CNW/ - UEX Corporation ("UEX") is pleased to announce
plans for its 2009 approved annual and seasonal budgets. Exploration and
development budgets planned for 2009 total approximately $16.5 million, of
which UEX will be responsible for approximately $10.9 million. An $11 million
annual budget has been approved for the Western Athabasca Joint Venture with
AREVA Resources Canada Inc. ("AREVA") of which UEX will be responsible for its
49% interest of approximately $5.4 million. The $5.5 million Budget for its
100% owned Hidden Bay Project ("Hidden Bay") is a winter program and
additional drilling is planned for the 2009 summer/fall field season pending
results from the winter program. UEX plans to use three drills at Hidden Bay
during the winter/spring 2009 season; in addition AREVA will use three drills
at the Shea Creek Uranium Deposit ("Shea Creek"). UEX's current cash position
is approximately $25.0 million, and is well-financed to carry out its 2009
programs.
Western Athabasca Projects
Shea Creek hosts the Kianna, Anne, and Colette Deposits and is one of ten
49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA, the
operator. UEX has approved total 2009 expenditures of approximately $11.0
million proposed by AREVA. The 2009 expenditures include an exploration budget
of $9.0 million of which $8.25 million has been allocated to Shea Creek and a
development budget for Shea Creek of $2.0 million.
The 2008 Summer/Fall Drilling Program is currently in progress at Shea
Creek, and will continue until the end of November 2008. Results from this
program will be reported when they are received and drilling completed.
The 2009 Diamond drilling program at Shea Creek will utilize at least
three drills and is planned to begin in early 2009. The objectives of the
drilling program will be as follows:
- To perform infill and delineation drilling on the Kianna and Anne
Deposits to extend known mineralization at the unconformity and
within the basement.
- To drill along the prospective corridor between the Anne and Kianna
deposits; such a program could lead to the discovery of additional
zones of high-grade mineralization such as the SHE-123 and SHE-118
series drill holes which would require a further detailed follow up.
In addition to the drilling program at Shea Creek, a geophysical survey,
consisting of DC Resistivity or ground EM, is planned for the Alexandra
Project.
UEX will provide an update to shareholders on the development programs at
Shea Creek for 2008 and the budgeted plans for 2009 in a separate news release
before year end.
Hidden Bay Project:
Summer/Fall 2008 Progress
Substantial steps to advance the Horseshoe, Raven and West Bear Deposits
on UEX's 100%-owned Hidden Bay Project have been made during 2008. A major
milestone was the release of the recent National Instrument 43-101 ("N.I.
43-101") compliant resource estimate for the Horseshoe Deposit, which
comprises 3.578 million tonnes grading 0.237% U(3)O(8) in the Indicated
category containing 18.693 million pounds of U(3)O(8), and 0.311 million
tonnes grading 0.208% U(3)O(8) in the Inferred category containing 1.426
million pounds of U(3)O(8) at a cut-off of 0.05% U(3)O(8). Supporting N.I.
43-101 technical reports to this resource estimate are now filed on Sedar and
dated November 12 and 14, 2008, and are available for public viewing. The
Horseshoe resource represents a significant increase in the overall size and
grade of the Horseshoe Deposit from resources historically estimated by Gulf
Resources Canada ("Gulf"). A resource estimate for the adjacent Raven Deposit
is currently underway, and is anticipated to be received in four to five
weeks.
A feasibility study for the West Bear Deposit is expected to be received
by the end of 2008, which will allow UEX to assess potential mining options of
this very shallow, high-grade resource. The current N.I. 43-101 resource
estimate for the West Bear Deposit is 73,800 tonnes grading 1.004% U(3)O(8)
containing 1.614 million pounds of U(3)O(8) using a cut-off grade of 0.15%
U(3)O(8).
Drilling on the Hidden Bay Project is ongoing. Currently, three drills
are defining mineralization in the Horseshoe Northeast area, a portion of the
Horseshoe Deposit that lies beyond, but separate from, the area of the recent
resource calculation. With additional drilling which is planned in this area
in early 2009, a resource estimate for this area is expected for the second
quarter of 2009, which will add to the global Horseshoe resource. Recent
drilling also comprised several infill holes in the Horseshoe S2 zone, which
contains most of the inferred resource from the recent resource calculation.
Drilling in the S2 zone has successfully traced mineralization there, and the
results should allow upgrading of much of this zone to Indicated status. To
date, approximately 70 drill holes (20,000 metres) have been completed in the
Horseshoe and Raven areas over the summer and fall of 2008. This program
included definition drilling in the Raven Deposit which will be incorporated
in the upcoming resource, infill drilling in the Horseshoe Deposit, and
ongoing step-out and definition drilling in the Horseshoe Northeast area.
Drilling is anticipated to continue to the end of November 2008 and again
resume in January 2009.
Further exploration drilling in the summer of 2008 in 39 holes (10,800
metres) was completed on the Tent-Seal and Rabbit West target areas. This
helicopter-supported drilling followed up areas of previously identified
alteration and mineralization along the two fault systems, and several
airborne radiometric anomalies.
Geochemical results of these drilling programs have not yet been received
and will be reported when all data is compiled.
2009 Proposed Exploration and Feasibility Programs
Given the success of the drilling in the Horseshoe and Raven areas over
the last few years, UEX intends to continue an aggressive drilling program
during the winter and spring of 2009 to further expand the known resources and
explore for new, nearby mineralized zones. Three Diamond drills will test the
local area with a program of approximately 25,000 metres, budgeted at $5.5
million. This program is intended to define additional areas of mineralization
that were historically intersected by Gulf, and to drill other adjacent
geological and geophysical targets. In order of priority, the drilling target
areas include: a) further definition of the extent and grade of historically
intercepted mineralization in the Horseshoe Northeast target area which lies
outside of the current Horseshoe resource estimate as a continuation of the
current drilling program; b) testing open areas of Raven mineralization on
both the west and east sides of that deposit; c) testing the area between the
two deposits for additional mineralization; and d) testing the down dip extent
of the alteration zones that host the Raven and Horseshoe Deposits. Several
geotechnical drill holes are also planned. Additional outlying exploration
targets include areas where clay alteration intersected by historical drilling
is coincident with resistivity and gravity anomalies which suggest the
presence of new zones of clay alteration that may be associated with uranium
mineralization. Drilling here will also test structural targets where
projections of known faults may extend across potentially favorable
lithologies that are host to mineralization.
The Horseshoe Northeast drilling, and step-out drilling to the east and
west of Raven in open areas should allow expansion of the Horseshoe Resource
base, for which updated N.I. 43-101 resource estimates are planned to be
calculated in 2009. Additional infill drilling, if necessary to upgrade parts
of the Raven deposit to Indicated status, follow-up to the winter drill holes,
and testing of one or more property scale targets could be undertaken in the
summer of 2009, depending on the results of the winter program and the Raven
resource estimate.
With the high proportion of the Horseshoe resource base in the Indicated
category, and a N.I. 43-101 compliant resource expected shortly for the Raven
Deposit, scoping level evaluations which are currently underway internally
will be advanced to feasibility level in 2009 to asses the potential economics
and viability of mining these deposits. These studies will examine the most
efficient methods and procedures for extracting the defined uranium resource,
including the most appropriate road access and support infrastructure, mining
methods, operating plans, cash flow analyses and projections in order to
determine net present values and internal rates of return for Horseshoe at
various uranium price levels. Budgets and timelines for feasibility work would
be determined in consultation with the lead engineering contractor. In
anticipation of a potential future feasibility study on the Horseshoe and
Raven Deposits, environmental baseline studies and geotechnical studies were
commenced by Golder Associates Ltd., of Saskatoon, Saskatchewan during 2006
and 2007 and are ongoing. Metallurgical studies are also continuing, with
initial results from three metallurgical drill holes indicating that the
uranium in both deposits is easily leached under relatively mild atmospheric
leach conditions, producing leach extractions of 98%, and lacking any
significant concentrations of deleterious elements (see the November 12, 2008
technical report filed on Sedar for further details).
To view maps and other information regarding UEX's exploration projects,
please access UEX's website at www.uex-corporation.com under "Projects".
About UEX
UEX is a Canadian uranium exploration and development company actively
involved in 19 uranium projects, including seven that are 100% owned and
operated by UEX, one joint venture with AREVA that is operated by UEX, ten
joint-ventured with AREVA and one under option from Japan-Canada Uranium
Company, Limited, which are operated by AREVA. The 19 projects, totaling
374,513 hectares (925,442 acres), are located in the eastern, western and
northern perimeters of the Athabasca Basin, the world's richest uranium belt,
which accounts for approximately 23% of the global primary uranium production.
UEX is currently developing several uranium deposits in the Athabasca Basin
which include the Kianna, Anne and Colette Deposits at its Shea Creek Project,
a joint venture with AREVA in the western Athabasca Basin, and the West Bear,
Raven and Horseshoe Deposits located at its 100% owned Hidden Bay Project in
the eastern Athabasca Basin.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen,
President & C.E.O.
Forward-Looking Statements
This news release contains "forward-looking statements" that are based on
UEX's current expectations, estimates, forecasts and projections. These
forward-looking statements include statements regarding UEX's outlook for our
future operations, plans and timing for the commencement or advancement of
exploration activities on our properties, and other expectations, intention
and plans that are not historical fact. The words "estimates", "projects",
"expects", "intends", "believes", "plans", or their negatives or other
comparable words and phrases are intended to identify forward-looking
statements. Such forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Many of these factors are beyond the control of UEX. Consequently,
all forward-looking statements made in this news release are qualified by this
cautionary statement and there can be no assurance that actual results or
developments anticipated by UEX will be realized. For the reasons set forth
above, investors should not place undue reliance on such forward-looking
statements. UEX disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.
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